Puma is facing challenges as sales of its newly launched Speedcat shoes, inspired by motor racing, have fallen short of expectations. This comes amidst a rise in popularity for Adidas' retro Samba soccer trainers, dominating the market.

With bewer brands like On Running and Hoka rapidly gaining market share, the sportswear industry is undergoing a seismic shift, chipping away at the dominance of giants like Nike. This increased competition is intensifying the fight for shelf space at major sporting goods retailers.

Puma's recent financial performance reflects these challenges. The brand’s Q4, FY24 sales grew by 9.8 per cent, falling short of analyst expectations of 12 per cent. Its net profit for the year declined to €282 million ($293 million) from €305 million, primarily due to increased interest payments on debt.

To address these challenges, Puma has initiated a cost-cutting program aimed at boosting its EBIT margin to 8.5 per cent by 2027, up from 7.1 per cent in 2024. However, Barclays analysts warn, this could divert management's attention from crucial sales growth initiatives.

Puma now faces the daunting task of navigating a highly competitive market while simultaneously improving its profitability. The success of its cost-cutting measures and the ability to reignite sales growth will be critical to its future success.